Global Institutional Investor and Mover and shaker of the Indian Market, Goldman Sachs has upgraded India to OVERWEIGHT in a report released just a while ago. GS likes Indian equities on both a 3 and 12-month basis.

The increase in corporate tax surcharge in the Union Budget would potentially have muted impact on overall earnings. The 130 bp hike in corporate taxes would potentially lower aggregate EPS by only 2%. Earnings revisions and sentiment have been weak lately, but we expect the cycle to improve.

India currently trades at 13.4x forward 12-month P/E and 2.6x book value. Relative to the rest of region, India is also Read more